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| Power Finance Corporation FPO |
What is the call on the PFC FPO which opens today? Is it attractively priced or the margin of safety is limited and restricted for that stock?
All these government FPOs probably should be bought into by retail investors. You have seen most of the new ones give decent price listings after they come up. In follow-on public offers the only problem is that the margin is probably not so much because the stocks are trading, and you see a lot of volatility. But they are reasonably priced.
I think the government has learnt its lesson now that they have to price stocks at a reasonable valuation if they want to go through. You have got obviously ONGC, which another big issue going through. The positive of these disinvestments is that the government through whatever message would like the markets to remain firm and steady. If the government is going to go through and get over Rs 40,000 crore of divestment in this fiscal, it is not going to be able to do it with the negative sentiment. I think the government realizes that.
The pricing is probably reasonable and it suits portfolio investors who are not too bothered about the short-term market fluctuations.
